Anchor: The Moon Jae-in government has released its budget plan for next year, which will rise more than seven percent or 28 trillion won from this year to a record 429 trillion won. The spending plan focuses on welfare and job creation.
Our Kim In-kyung has more.
 
Report: The government determined a record 429 trillion won budget for next year during a Cabinet meeting on Tuesday. The plan will be submitted to the National Assembly on Friday.
 
The government allocated 146-point-two trillion won to health, welfare and labor. The category, which includes the job creation budget, increased a record 12-point-nine percent from a year earlier.

The budget for education increased eleven-point-seven percent, while funds for defense rose six-point-nine percent to 43-point-one trillion won, the largest growth in nine years.
 
However, the spending on social overhead capital was slashed by a record 20 percent and the budget for culture was also cut by more than eight percent.
 
The requested budget for youth employment increased 21 percent.
 
The government said it will invest 26-point-two trillion won to implement major policies such as raising the minimum wage and basic pension for senior citizens by reducing unnecessary spending and increasing the budget. 
 
The nation’s fiscal deficit is expected to increase one trillion won next year from this year. The national debt is projected to rise 39 trillion won to surpass 700 trillion won for the first time.

In a news briefing held last week to preview the budget, Finance Minister Kim Dong-yeon said the government carried out fiscal restructuring to secure fiscal soundness. 

[Soundbite: Finance Minister Kim Dong-yeon]
“Despite the expansionary fiscal management, the government paid special attention to maintain a sound fiscal health in the mid to long term. The fiscal debt and national debt to GDP ratio will improve by one tenth of a percentage point each next year over this year.” 
 
The government pledged to save 62-point-seven trillion won by reducing unnecessary spending over the next five years, while increasing tax revenues through heavier taxes on the super-rich and big conglomerates.
Kim In-kyung, KBS World Radio News.